Financial Literacy Review - Standard 2
Question 1
Take home pay is also called:
disposable income
fixed income
net income
gross income
Question 2
What is a 401K plan?
A portion of salary deducted from net pay and placed in a special account.
Money set aside to pay medical expenses not covered by insurance.
A portion of salary deducted from gross pay and placed in a special account.
A plan that specifies benefits to be received at retirement age, based on total earnings and years of work.
Question 3
Sam earns $550 per month in net income. He shares living expenses with a roommate. his expenses are: Food, $160/month, rent, $130/month, utilities, $25/month; and transportation, $20/month. How much does Sam have left each month to save/spend on other items?
$300
$170
$245
$215
Question 4
When depositing a check you've received into your account, it is best to:
Sign the back of the check immediately to save time in line at the bank.
Use a small portable safe to lock up the check as you travel in the car
Use a restrictive endorsement with your signature, account number, and "for deposit only"
Use an open endorsement and sign only your name on the back
Question 5
What is the largest recommended percentage of your net monthly income that should be set aside for housing?
15-20%
20-25%
25-30%
30-35%
Question 6
Which is a mandatory payroll deduction?
retirement fund
interest income
health insurance
social security
Question 7
Which tax is the Federal Government's leading source of revenue?
Unemployment tax
Medicare tax
Personal income tax
Social Security tax
Question 8
What is the purpose of the Form W-4?
Verifies an employee's eligibility to work
Allows the employee to join a tax-deferred savings plan
Determines how much of a employee's paycheck will be withheld for federal income taxes
Informs the employer which method of payment the employee prefers
Question 9
Your take home pay is less than the total amount your earn from your job, which of the following best describes what is taken out of your total pay:
Federal income tax, Social Security, and Medicare contributions
Federal income tax, Property tax, and Medicare contributions
Federal income tax, Sales tax, and Property tax
Federal income tax, Sales tax, and Social Security contributions
Question 10
Which is NOT one of the three most common ways an employer may handle paying his/her employees?
Paycheck with the paycheck stub
Cash
Direct Deposit
Payroll card
Question 11
When should you receive your W-2 in the mail?
End of January
April 15
End of December
Your should already have it when you begin work
Question 12
Who pays the most in taxes according to their status?
Single
Married
Head of Household
Married with Children
Question 13
When is the filing date for taxes?
December 31
January 1
April 15
June 1
Question 14
When should you fill out a new W-4 form?
When you no longer work at a job. (fired or quit)
When you get married
When you have a child
Both B and C
Question 15
What could happen to you if you choose not to pay your taxes?
Nothing. The government doesn't have time to track you.
Fines and penalties
Federal government seizes property, garnishes wages and possible jail time.
You have to pay more the following year.
Question 16
What is the definition of "human capital"?
The process of self investment
The combination of all events in an individual's life
Purchasing wanted or desired items
Decisions influenced by friends, coaches and teachers
Question 17
What is an occupation?
A work role with a specific organization
A wide category of jobs with similar characteristics
A lifetime journey of building and making good use of skills, knowledge, and experiences
The combination of leisure activities, family influence, and personal interests
Question 18
What is a standard of living?
State of being happy, healthy and prosperous
A plan for success
Something unnecessary but desired
Minimum necessities, comforts, or luxuries thought to be essential.
Question 19
Which of the following best describes a career?
Skills obtained from completing various jobs
Building skills, knowledge, and experiences throughout a lifetime
An occupation held during one part of a person's life
Personal satisfaction obtained from completing a job.
Question 20
Which of the following is NOT a characteristic of transferable skills?
Transferable skills are acquired through various life experiences
Transferable skills can only be applied to one job
Transferable skills create a greater range of career opportunities
Transferable skills enhance an individual's human capital
Question 21
Having a career implies that a person :
is interested in the most money that can be achieved
must have completed an advanced college degree
has a commitment to a profession which requires continued education.
will not be required to change jobs within a professional area
Question 22
Steven is considering taking a job with a company that is offering gym memberships, flexible hours, repayment of education loans, merchandise discounts, and childcare. These components of the job offer are called:
fringe benefits
job perks
work incentives
competitive hiring practices
Question 23
The first step in filling out a job application is to:
write with a pen that has black ink
start over if you make an error
use the computer to fill out the application if your handwriting is hard to read
read the application completely before you start, to ensure accuracy
Question 24
If being fired is the reason for changing jobs, an appropriate response on a job application concerning this situation would be:
Involuntary separation
Voluntary separation
Seasonal job
Quit
Question 25
Salary, location and environment, and benefits are factors to consider when:
Determining your cost of living expenses
Evaluating a job offer
Researching future career opportunities
Estimating annual income